Cannabis Business in North Dakota

Medical Marijuana in North Dakota

The North Dakota Department of Health and Human Services (HHS) oversees the medical marijuana program in the state. Measure 5, also known as the North Dakota Compassionate Care Act, was approved by voters in 2016 and legalized medical marijuana.

Dispensaries

Dispensaries are compassion centers that are registered with the HHS and authorized to sell usable marijuana to registered qualifying patients and their caregivers.

Dispensary Limits:

• The HHS will register no more than eight dispensaries.
• A dispensary cannot possess more than 3,500 ounces of usable marijuana at any given time.

Manufacturing Facilities

Manufacturing facilities are compassion centers that are registered with the HHS and are authorized to produce and process usable marijuana to sell to dispensaries.

Manufacturing Facility Limits:

• The HHS will register no more than two manufacturing facilities.
• A manufacturing facility can only grow an amount of marijuana sufficient to meet the demands of the qualifying patient population.

Prohibited Activities

It is important to note the following activities are prohibited:

• Home Cultivation: Registered patients cannot grow medical marijuana for personal use at home. Only compassion centers authorized by the HHS can produce, process, and sell medical marijuana.
• Recreational Use: Recreational marijuana is illegal in North Dakota.
• Reciprocity: North Dakota does not recognize medical marijuana cards issued in other states.

Hemp in North Dakota

The North Dakota Department of Agriculture (NDDA) is responsible for the Industrial Hemp Research Pilot Program in North Dakota. This program aims to explore how industrial hemp fits into the current agricultural environment in the state and how it can contribute to North Dakota’s economy. Anyone looking to grow or process hemp needs to obtain a license from the NDDA before acquiring seeds, clones, or other propagative materials.

Hemp Licensing

The following materials must be submitted to the NDDA to obtain a hemp license:

• Criminal History Record Check Request (SFN 60688)
• 2 sets of fingerprints
• Hemp License Application (SFN 58476)
• Hemp Processor License Application (SFN 61613)
• $41.25 non-refundable check or money order for the background check made out to the North Dakota Department of Agriculture
• Appropriate Hemp License Fee

The fees for hemp grower licenses vary based on the number of lots being cultivated. A lot is defined as a contiguous area in a field, greenhouse, or indoor growing structure containing the same variety or strain of hemp.

The fee schedule for hemp grower licenses is as follows:

The fee for a hemp processor license is $200.

Buying, Selling, and Transporting Hemp

• International Seed: The regulations for importing hemp seed into the U.S. have changed, and seed can now be brought into the country without a DEA Import Permit. It is recommended to contact the seed distributor for other import requirements.
• Domestic Seed: Hemp growers can buy domestic seeds from any state but should exercise caution and purchase seeds with a THC level below 0.3% from reputable sources.
• Hemp Clones: Clones, or young hemp plants, can be brought into the state without additional requirements.
• Selling Hemp Seed: The Hemp Program does not require any licenses for selling seeds, however seed dealers will need to contact the North Dakota State Seed Department.
• Shipping Hemp Flower: There are no restrictions on shipping hemp flowers between states as long as the THC content does not exceed the legally permitted percentage.

Legal and Illegal Hemp Products

The following products are permitted under North Dakota’s Hemp Program:

• Hemp fiber that has been processed for use in textiles, rope, paper, hempcrete, or other building or fiber materials
• Cured hemp flower that has not been treated with extracted cannabinoids
• Hemp seed that has been processed so it cannot germinate and is suitable for human consumption
• CBD and CBG products that are:
  • Broad Spectrum, or
  • Full Spectrum, or
  • Isolate, and
  • Have a THC concentration that does not exceed the limit set by the Agriculture Commissioner

The following hemp products are prohibited:

• Inhalants created by extracting compounds from hemp (vapes and vape cartridges)
• Products containing chemically derived cannabinoids such as:
  • Delta-8 THC
  • THC-O Acetate
  • THC-O
  • HHC
  • THCP
• Dietary supplements
• Products with medical claims
• Any product deemed psychotropic by the Agriculture Commissioner

CBD in North Dakota

CBD products derived from hemp that contain 0.3% or less THC and other hemp products within the acceptable hemp THC level are legal in North Dakota. The North Dakota Department of Agriculture** **and North Dakota Food and Drug Administration (FDA) are responsible for regulating hemp production and processing. Since there is no legal framework for recreational marijuana in North Dakota, the cannabis business is predominantly focused on medical marijuana and hemp-derived products.

Purchasing CBD

Hemp-derived CBD products can be purchased from various retailers, such as health stores, grocery stores, and online. However, marijuana-derived CBD is only available to qualifying patients with a medical marijuana card through state-licensed compassion centers.

Labeling Requirements

CBD products in North Dakota must follow specific labeling guidelines. Packaging must include:

• Manufacturer's name and registration details
• Date of manufacture
• Amount of THC and CBD
• List of ingredients
• Expiration date
• Activation time
• A warning that the product has not been approved by the FDA for treatment, cure, or prevention of any disease